Accumulated losses at Dublin radio station NewsTalk 106 have more than doubled to over €8 million, according to accounts lodged with the Companies Office. Emmet Oliver reports.
The company's profit and loss account shows accumulated losses rising from €3.8 million in 2002 to exceed €8 million in 2003. This means the station recorded a €4.2 million loss in 2003. The figures do not take account of the recent arrival of broadcaster Eamon Dunphy.
The station, on air since April 2002, has managed to increase its listenership levels in Dublin to 5 per cent, but profitability looks some way off, according to the figures for its holding company News 106 Ltd.
The accounts show an excess of liabilities over assets. But the accounts add: "The shareholders have indicated that they will provide additional financial support by way of share capital and long-term loan notes to enable the company to continue its operations for the foreseeable future."
Businessman Mr Denis O'Brien now owns almost 60 per cent of the station through his company Radio Two Thousand Limited. The holdings of other shareholders, including Capital Radio Productions, the former owners of FM 104, have been diluted because of various rights issues. Remaining shareholders include Setanta Media and a company called Hyper Trust Ltd.
The accounts disclose that, since the end of 2003, several fundraisings have taken place. In February 2004, a rights issue at €1.27 per share was used to raise €1.3 million. In June 2004 another rights issue at the same price raised €1.5 million. It is not clear if all shareholders participated in these rights issues.
The accounts also disclose that a company controlled by the station's chairman, Mr John Purcell, was paid €58,508 during the year under review. The company paid was Communication Strategies Limited and all transactions were conducted at normal commercial rates.
Mr O'Brien has given a commitment to the station's board that he will continue to provide funds. The station received some good news recently when it was named station of the year by Phonographic Performance Ireland.
NewsTalk 106 is currently managed by the former 98 FM managing director, Mr Dan Healy, who has re-focused the station over the last year. He was also responsible for bringing Mr Dunphy onto the payroll.
Mr O'Brien's radio interests have been under some pressure in recent years. The ultimate holding company for his radio interests, Communicorp Limited, reported a pre-tax loss of €1.2 million for 2002.
Losses at Spin FM and NewsTalk are understood to have contributed to this result.
Despite the pressure on his Irish radio interests, Mr O'Brien's Communicorp group has been expanding and recently agreed to purchase a large group of stations in Eastern Europe.
